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RSUs for public companies are effectively cash, as you can generally sell them immediately at the time when they vest. The value isn't fixed, but if the company
by wan23 9y ago
RSUs for public companies are effectively cash, as you can generally sell them immediately at the time when they vest. The value isn't fixed, but if the company is doing well that's a benefit to employees.
- sjg007 9y agoYes and no.. my point still stands. I would also exclude "bonus" in these comparisons because they are too variable as well.
- OkGoDoIt 9y agoBut in reality the bonus and RSU's are a very significant portion of compensation. I know several people in their late 20's in SF with salaries around $150k but after adding RSU's and annual bonus and other oddities like recurring "signing bonuses" they pull in between $200k and $250k per year before taxes. Even if it's slightly variable it is still a big difference from the base salary. As an example of why this matters, my base salary is $20k more than a certain friend of mine but my employer doesn't do RSU's and has relatively low bonuses, so in the end my friend makes around $50k per year more than me, which equates to a significant lifestyle difference.